Legolas Seeks to Revolutionize Cryptocurrency Exchanges
With the rapid rise in popularity of blockchain technology, it seems like blockchain-based platforms are a dime a dozen. In such a competitive environment, it’s extremely hard for a company to stand out and set themselves apart from the crowd.
One company that has managed to do this is Legolas, a blockchain startup led by entrepreneur Frederic Montagon. The company has created a platform called Legolas Exchange that functions as a hybrid exchange where cryptocurrencies can be traded quickly and securely. The platform runs on blockchain technology and is touted as the first fair, theft-proof, premium exchange.
Legolas’ Remarkable Hybrid Structure
In a world with many “this or that” and “black and white” choices, it is rare to find compromise and harmony. But Legolas Exchange accomplishes a perfect blend of decentralization and security with its hybrid blockchain platform.
Traditional decentralized exchanges cannot provide viable, long term solutions to cross-chain transactions. Statistics shared by CoinMarketCap indicate that three percent of transactions are intra-chain (within the same blockchain), 22 percent are cross-chain (between two different blockchains), and a whopping 75 percent are between fiat and cryptocurrencies.
What this means is that transactions between different blockchains and fiat transactions are, to use Legolas’ wording “impossible on decentralized exchanges.” Though some are working on solving cross-chain problems, the potential expansion is limited to 25 percent of the market share, leaving 75 percent left to be had.
In response to this, Legolas has developed a platform that combines the benefits of both decentralization and–gasp–centralization. The revolutionary platform “incorporates a decentralized ledger within its proprietary centralized platform in order to neutralize front-running and guarantee the inalterability, temporality, and transparency of the order book.”
The hybrid exchange thus establishes a safe trading environment where all types of transactions can take place–be it intra-chain, cross-chain, or crypto/fiat. Legolas is also the solution for eager financial institutions who want to enter the crypto currency market but cannot.
The centralization factor of the platform facilitates the type of transactions that are otherwise impossible, or at the very least extremely difficult, to execute on traditional decentralized exchanges. Legolas Exchange has also partnered with PayQix, the owner BankQix in Luxembourg, to provide “scalable, reliable, fast and secure” large fiat currency deposits and withdrawals.
The decentralized ledger provides accountability, transparency, and security–thus ensuring that market manipulation and fraud does not take place. The Legolas team has done the unthinkable–they’ve found a way to neutralize the threats of centralization while still extracting the security it provides. At the same time, they can guarantee a secure decentralized environment.
So Honestly, What’s the Catch?
There’s the old saying, “If something is too good to be true, it probably is.” Does this apply Legolas Exchange? To be sure, the platform won’t be perfect, that much is guaranteed. But the exchange is certainly a welcome addition to the systems we have in place.
It comes as no shock that cryptocurrencies are regularly hacked–see a report detailing why ICOs are often a hacker’s dream. Or take the fiat currency exchanges–it’s not like the NYSE or the NASDAQ or the London Stock exchange are free from breaches. Heck, even the SEC gets in trouble sometimes.
Recently, they were sharply criticized not only for being hacked, but for taking so long to even realize that a breach took place. So again, Legolas Exchange will not be perfect, but it is better than the current alternatives without being “too good to be true.”
The exchange itself is built by a group of experienced IT and finance professionals. Legolas boasts that their system is “unassailable”, and because of the previously mentioned partnership with PayQix, users with the required Bitcoin accounts will have currency as secure as the fiat counterparts.
The platform is able to utilize blockchain technology to provide accessible, auditable trade history and order books, supplying users with real time reporting. The exchange’s protocol makes orders temporal, meaning that front-running and market manipulation are neutralized. The decentralization thus keeps users protected and transactions accounted for.
The Rollout of Legolas Exchange
The platform runs on Legolas’ tokens, or LGO. The tokens can be purchased with bitcoin during the presale, which can be accessed at Legolas’ website. Investors, beware, however, as tokens will no longer be generated once the sale is over.
With the proceeds, Legolas hopes to continue to development, a process which began in Q2 2017 with the proof of concept launch. The beta version will be released in October 2017 provided operations continue to run smoothly, and V1 development is set to roll out in Q4 2017.
If things continue to fall in line for the hybrid exchange, Legolas could hit the market much quicker than anticipated. This would be a bonus for investors and traders alike–Legolas Exchange truly is a one of a kind blockchain startup that will revolutionize currency transactions.